Case Study: London Automotive & Manufacturing achieves 70% inventory cost reduction with ShopEdge Software

How London Automotive & Manufacturing used a single solution approach to decrease inventory cost by 70%

London Automotive & Manufacturing Ltd., an automotive parts supplier, faced significant operational inefficiencies due to a lack of an integrated system. They relied on disparate software, including a basic accounting package, multiple independent spreadsheets for inventory and scheduling, and a third-party solution for EDI. This patchwork system made it difficult to track inventory, leading to over $500,000 tied up in excess raw materials and high costs from searching for parts and expedited shipping. They turned to ShopEdge Software for an ERP solution to unify their data and address these challenges.

By implementing the ShopEdge ERP system, London Automotive replaced its multiple software packages with a single, integrated solution. This provided a common database for real-time inventory visibility and advanced shop floor scheduling capabilities. The results were dramatic: inventory costs were reduced by 70%, from $1.3 million to $250,000, which paid for the system's investment in months. The solution also eliminated $50,000 in annual expedited shipping costs and significantly improved production efficiency and overall equipment effectiveness (OEE) by minimizing changeover times.

London Automotive & Manufacturing Company

Greg Ducharme

London Automotive team